Virtual card payments solidify vendor relationships for real estate firm
Client Story: Ryan Companies US, Inc.
Committed to supporting communities
As often as possible, Ryan Companies uses vendors in the communities where they work. In 2013, the financial team was looking to further support the company’s vendors by offering them the option of getting paid faster.
“Our goal was to migrate to some form of electronic payment system we could use to pay our vendors faster than we could with checks, to help them improve their cash flow,” says James France, the company’s accounts payable manager.
About Ryan Companies
Ryan Companies is a designer, capital investment consultant, builder and real estate manager specializing in fully integrated solutions. Its key market sectors include retailers, healthcare, senior living and corporate build-to-suit.
For more than 80 years, from their base in Minneapolis and offices across the country, the company’s experts in construction and commercial real estate (CRE) have put their hearts into creating spaces that bring clients’ stories to life. At Ryan, the mission is to “build value, build communities and build the backdrops for life.”
- The challenge: Support vendors in its communities by giving them the option of getting paid faster
- The solution: U.S. Bank Virtual Pay virtual card payments
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U.S. Bank Virtual Pay: A working capital win-win
Ryan Companies turned to U.S. Bank to implement a virtual card program that allows for completion of vendor payments within days of each transaction. The program has grown year over year and today enhances liquidity for about 1,000 vendors.
“As an organization, we’re building value and we want to keep the value in and around the communities in which we operate,” France says. “The U.S. Bank Virtual Pay solution enables us to pay our vendors faster, so they can use that improved liquidity to provide more and better services to both us and others in the communities we serve.”
At the same time, Ryan Companies takes advantage of the credit card billing cycle and grace period to hold onto its cash several weeks longer than if it paid by check.
A new revenue stream
In addition, the seven-member accounts payable unit at Ryan is earning rebates on its virtual card payments with game-changing ramifications. Each year, accounts payable establishes a new typically higher virtual card rebate goal. “We’re almost to the place where our rebate covers the entire cost of our A/P department,” France reports.
Other advantages
With 1,000 vendors now accepting Virtual Pay payments, Ryan has also reduced a range of check-related costs and fees.
But the benefits don’t stop there. France says Virtual Pay saves him time managing the daily vendor payment process. “I can reissue a card payment in five seconds, whereas if I have to reissue a check, I have to void the item and execute a stop payment,” he explains.
What’s more, paying with virtual card helps Ryan minimize its fraud experience. “There was a time when we were having some checks stolen, washed and turned into fraudulent items,” France says, “but increasing our vendors’ participation in the Virtual Pay program has helped cut down on that.”
Starting a program – and keeping it rolling
U.S. Bank made it easy to initiate the Virtual Pay program and has regularly helped Ryan Companies attract more vendor participation, France says. In kicking off the program, U.S. Bank used the Visa Supplier Matching Service to identify Ryan vendors already accepting card payments, singling them out as likely candidates for Virtual Pay. With that information in hand, the bank conducted the initial vendor outreach campaign, resulting in nearly 500 vendors agreeing to take card payments from Ryan.
Since the program’s inception, U.S. Bank has taken the lead on supplier enablement for Ryan, spearheading regular campaigns and doubling participation over time, France says. Each campaign has generated 100 or more new vendor participants.
“Our partnership with U.S. Bank is helping us build lasting vendor relationships within our communities and forging an exciting, revenue-generating role for Accounts Payable.”
- James France, accounts payable manager, Ryan Companies
Virtual Pay: ‘Better and easier’
France raves about the quality of the customer service he and his staff receive from the virtual card experts at U.S. Bank. He has regular relationship meetings with his bank contacts where they discuss the Virtual Pay program and says he can always count on U.S. Bank to help resolve any issues his vendors report about their payments.
“U.S. Bank responsive customer service makes my life easier, and the prompt handling of day-to-day issues helps keep our vendors loyal to the program,” France says.
He gives high marks to the U.S. Bank Virtual Pay program, based not only on personal experience, but also on what A/P managers at other companies are telling him. “We have a payables system vendor, and every time I go to one of its conferences, there’s a discussion group around virtual card,” France says. “I always compare notes with my peers, and from what I’ve seen and heard, the U.S. Bank platform is better and easier to use than other platforms.”
The strategic value in real estate
The Ryan Companies real estate management team manages more than $2 billion worth of assets for institutional, corporate and entrepreneurial entities. With U.S. Bank help, the company’s business continues to grow.
Let’s talk about the benefits of Virtual Pay.
Our relationship-focused virtual payments team is here to listen to your A/P needs and help you decide if electronic payment methods like Virtual Pay have a place in your process.
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